The Auditing and Assurance Standards Oversight Council (AASOC) discussed the activities of the Auditing and Assurance Standards Board (AASB) and related matters. The meeting spanned two days. The first day was open to the public. The second day was reserved for in-camera discussions and not open to the public. The following notes relate to the first day, December 16.
- Chair’s Opening Remarks
- Approval of Minutes
- AASB’s Chair Report and Update
- Public Trust Committee Presentation
Chair’s Opening Remarks
AASOC Chair Kevin Nye welcomed members and observers.
Approval of Minutes
AASOC recommended some minor edits to the minutes. Subject to these minor edits, the minutes of the meeting held on September 28, 2021 were approved.
AASOC members discussed the public versus non-public content of the Council minutes, recommending that the meeting minutes be made public with the exception of in-camera sessions and observer reports related to non-public meetings.
AASB’s Chair Report and Update
AASB Chair Bob Bosshard provided an overview of the Board’s activities since its last update to AASOC. The three topics highlighted were the activities of the International Auditing and Assurance Standards Board (IAASB), Canadian standards, and other AASB projects.
At its October and December 2021 meetings, the IAASB approved conforming and consequential amendments to the other IAASB standards arising from the quality management and International Standard on Auditing (ISA) 600 (Revised), Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). These will be presented at AASB’s January and March 2022 meetings, respectively, for consideration and approval, and at the March 2022 AASOC meeting for confirmation of due process.
Mr. Bosshard stated that, in September 2021, the AASB issued the Discussion Paper, “Exploring Standard-Setting Options for Audits of Less Complex Entities,” with a comment deadline of December 10, 2021. The Board is evaluating the Canadian stakeholder feedback and it will prepare a response to the IAASB on their Exposure Draft by the end of January 2022.
In October 2021, the AASB discussed issues related to the development a standard on Compilation of Future-oriented Financial Information (FOFI). The project is progressing well, and the objective remains to approve the exposure draft in Q2 2022.
The IAASB approved its Work Plan 2022-2023 in December 2021. At its January 2022 meeting, the AASB will review and discuss its draft Annual Plan for 2022-2023, considering the effects of the IAASB’s Work Plan. With the creation of the International Sustainability Standards Board, the IAASB has shifted toward more initiatives and projects related to the assurance implications of sustainability reporting.
Following the AASB’s development of an enhanced process for identifying and reporting emerging issues and their impact on standards and guidance, the Board had their semi-annual emerging issues discussion in October 2021. The Board identified and prioritized emerging issues affecting the public interest that will be reflected in the Annual Plan. The Board is developing a technology framework to understand the evolution of technology from the perspectives of practitioners and entities.
The AASOC Chair thanked Mr. Bosshard and staff for their update and extended the Council’s gratitude to Eric Turner who is retiring in December 2021. Mr. Nye thanked Mr. Turner for his contribution and acknowledged that Mr. Turner has been with Chartered Professional Accountants (CPA) Canada for more than 27 years, contributing to many important initiatives in auditing and assurance.
Public Trust Committee Presentation
The AASOC Chair introduced Michele Wood-Tweel and Jamie Midgley who presented an overview of the Public Trust Committee. The presentation covered the Committee’s background, key strategic issues, matters in progress, and things to watch for in the future. Mr. Midgley explained that the Committee’s mandate is to provide leadership in establishing policies, strategies, and processes by which the CPA Canada Board of Directors, the boards of the provincial bodies, and the relevant committees can maintain the integrity of the profession and the confidence and trust of the public. The Council of Chief Executives appoints Committee members, consisting of one subject-matter expert from each provincial/Bermudian body and CPA Canada, and three public representatives. Currently, 11 members sit on the Committee and nine subcommittees and task forces report to it.
Ms. Wood-Tweel covered the key strategic issues and matters in progress for 2022-2023 that include three large endeavours currently underway: the Cullen Commission, Phase II CPA Code, and borderless work. She concluded with several things to watch for in the future, including the International Ethics Standards Board for Accountants’ Exposure Drafts “Technology” and “Engagement Team – Group Audits Independence”; the Cullen Commission’s final report, and the Independent Review Committee on Standard Setting.
The Auditing and Assurance Standards Oversight Council (AASOC) is an independent, volunteer body established by the Canadian Institute of Chartered Accountants (now Chartered Professional Accountants of Canada) in 2002. It serves the public interest by overseeing and providing input on the activities of the Auditing and Assurance Standards Board (AASB), which sets standards for assurance and related service engagements. Reporting to the public and consisting of prominent leaders from business and regulators, AASOC’s responsibilities include appointing AASB members, providing input on strategic priorities and evaluating the performance of the AASB.